Morgan Stanley Feels More Positive on Santander Consumer USA Holdings Following Investor Day

In a report published Thursday, Morgan Stanley analyst Cheryl M. Pate reiterated an Overweight rating and $28.00 price target on

. In the report, Morgan Stanley noted, “We come away from SC's investor day more positive on 1) risk-adjusted margins in 2014 vintage/ new business, 2) profitability of the unsecured consumer business, 3) scale in servicing business. Additionally, we believe provisioning should normalize down closer to charge-off levels on average on an annual basis as the reserve additions for 2013 vintage seasoning are likely done. We do expect continued reserve build on new originations. Finally, we expect asset sales / servicing portfolio to ramp in the super-prime to near-prime space, driving stability and higher fee income. SC remains our top pick and weview thecurrent stock level as an attractive entry point.” Santander Consumer USA Holdings closed on Wednesday at $18.63.